Shiba Inu (SHIB) had a beautiful run in 2021, the year is just starting and who knows the memecoin might just reach the all-time anticipated $1 value. This article gives the possibility of the token attaining this feat.
The dog-themed cryptocurrency skyrocketed from $0.000000000133 (nine zeros) at the end of 2020 to $0.000033 (four zeros) at the end of 2021, a gain of about 26,000,000 percent, as major cryptocurrency exchanges authorized trading in SHIB and meme coins remained popular despite Dogecoin’s initial ascent (DOGE).
Following the removal of five decimal zeros from the meme coin’s price, some are predicting that the currency would eventually hit $1.
That would be a gain of nearly 4,700,000 percent from its current price of $0.000021. Given how far Shiba Inu has already gone, it may appear that another 4,700,000 percent rise is possible, yet this might logically not happen.
Because of its enormous supply, Shiba Inus trade for such a little fraction of a penny. SHIB tokens have a current supply of 549 trillion, giving it a market capitalization of about $11 billion.
SHIB’s market valuation would be $549 trillion if those tokens were worth $1 each, approximately 200 times bigger than Apple, the world’s most valuable business, and more than six times the world’s yearly GDP.
To put it another way, Shiba Inu reaching $1 would very certainly necessitate a significant reorganization of the global economy. That will not be the case. There is, however, a catch.
The only way SHIB will get to $1
Shiba Inu’s worth might rise in one of two ways:
- One possible explanation is that dealers simply bid up the price.
- The alternative option is for the supply to decrease, hence increasing the value of the remaining coins.
To do this, the coins must be removed from circulation, or destroyed, as traders refer to it, by being transferred to dead wallets.
It’s not uncommon for this to occur. 410 trillion Shiba Inu coins have already been burned, according to Shibburn, a website that chronicles the burning of Shiba Inu coins.
The unknown Shiba Inu founder handed half of the 1 quadrillion Shiba Inu coin supply to Vitalik Buterin, the co-founder of Ethereum (ETH), who took nearly all of those coins out of circulation. Buterin did so because he felt uneasy about controlling so much of the cryptocurrency’s supply.
According to Shibburn, 62 million Shiba Inu coins had been burned in the previous 48 hours at the time of writing. While this may appear to be a large number, it would take a little over two weeks to burn one billion coins and 40 years to burn one trillion.
If there is a coordinated movement among SHIB holders, the burn could speed faster, especially if the value of SHIB continues to fall.
Burning the coins, on the other hand, has a distinct disadvantage. It is in the interest of holders to preserve their currencies rather than burn them if the value rises, and the decentralized nature of bitcoin makes it unlikely that an organized movement powerful enough to significantly restrict the number of coins will emerge.
What’s the future for Shiba Inu?
Shiba Inu has dropped more than 75% of its value since peaking at $0.000088 at the end of October, and other cryptocurrencies have also plummeted. Bitcoin (BTC) and Ethereum (ETH) are both down almost 50% from their all-time highs. Cryptocurrencies have fallen in value as the stock market has become increasingly concerned about rising interest rates.
It’s impossible to say where the cryptocurrency market will go next, but the most overvalued assets during the outbreak have already plummeted in value.
Another Shiba Inu rally appears unlikely at this time, and reaching $1 seems practically unattainable.
